Charge Card Advantages and Disadvantages

Advantages of Charge Card:-

Following are the advantage of a charge card:-

  • Charge cards are unlikely to lead to card debt problems as they need to be paid off in full every month.
  • Many users find it easier to budget responsibly with a charge card as they are expected to pay back what they owe on a monthly basis and cannot borrow for extended periods.
  • This kind of card may not be given a set credit limit making it easier for cardholders to buy expensive items as they need to.
  • Most cards come with additional rewards, discount schemes or perks for their users such as club services and various insurance plans.

Disadvantages of Charge Cards:-

Following are the disadvantages of a charge card:

  • Some users find it hard to stick with the program and may end up spending more than they can afford to pay off.
  • Charge cards are usually reserved for an individual with a good\high credit rating.
  • Some of the premium cards with the best deals cannot be applied for and are given out on an invitation-only basis.
  • These products can charge high annual fees and additional charges for some types of card use.
  • Not paying off what has been spent every month can lead to the addition of late payment charges or cancellations.

In India, American Express Charge Cards are a unique offering and the perfect choice for great service with fantastic rewards.

They provide flexibility of no pre-set spending limit and no interest charges as you pay the balance in full every month.

Your Charge Card will take into consideration your spending patterns, payment behavior and automatically keeps adjusting your spending level.